Often collected through payroll, student loan repayments are set to change in April 2020. The amount deducted from employees pay is determined by the level of earnings, and plan type. Here at Payroll Hub we are able to make the necessary calculations and deductions automatically.
Regarding student loan repayments, these are taken at 9% of the pay above a certain threshold, whereas it is 6% for Postgraduate loans. Below explains the different plan types:
Applying to all students who lived in the UK and started their course before September 2020. The annual threshold for Plan 1 loan is set to increase to £19,390 from April 2020.
Applying to all students who lived in England or Wales and started their course after September 2020. The annual threshold for this plan is set to increase to £26,575 in April 2020.
Introduced in April 2019, this new type of loan is not set to see an increase. Therefore the annual threshold will remain at £21,000.
If you are needing any assistance with student loan deductions, or payroll as whole. Contact us today, our dedicated team are happy to help.